Correlation Between SunOpta and NH Foods
Can any of the company-specific risk be diversified away by investing in both SunOpta and NH Foods at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SunOpta and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and NH Foods Ltd, you can compare the effects of market volatilities on SunOpta and NH Foods and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SunOpta with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and NH Foods.
Diversification Opportunities for SunOpta and NH Foods
Pay attention - limited upside
The 3 months correlation between SunOpta and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and SunOpta is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SunOpta are associated (or correlated) with NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of SunOpta i.e., SunOpta and NH Foods go up and down completely randomly.
Pair Corralation between SunOpta and NH Foods
Given the investment horizon of 90 days SunOpta is expected to generate 2.89 times less return on investment than NH Foods. In addition to that, SunOpta is 4.53 times more volatile than NH Foods Ltd. It trades about 0.01 of its total potential returns per unit of risk. NH Foods Ltd is currently generating about 0.1 per unit of volatility. If you would invest 1,203 in NH Foods Ltd on August 28, 2024 and sell it today you would earn a total of 497.00 from holding NH Foods Ltd or generate 41.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. NH Foods Ltd
Performance |
| Timeline |
| SunOpta |
| NH Foods |
SunOpta and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and NH Foods
The main advantage of trading using opposite SunOpta and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, NH Foods can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NH Foods will offset losses from the drop in NH Foods' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| NH Foods vs. Artisan Consumer Goods | NH Foods vs. The A2 Milk | NH Foods vs. BioAdaptives | NH Foods vs. General Mills |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |